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General Casualty Bulletin 446
STATE BOARD OF INSURANCE, 1110 SAN JACINTO, AUSTIN, TEXAS 78786
NED PRICE, Member
JOE CHRISTIE, Chairman
DURWOOD MANFORD, Member
WILLIAM J. HARDING, Chief Clerk
DON B. ODUM, Commissioner of Insurance
Automobile Series No. 487
W. C. Circular Letter No. 451
General Casualty Bulletin No. 446
Burglary & Theft Bulletin No. 123
Bond Bulletin No. 187
Plate Glass Bulletin No. 35
TO THE HOME OFFICES OF ALL INSURANCE COMPANIES, CORPORATIONS, EXCHANGES, MUTUALS, RECIPROCALS, ASSOCIATIONS, LLOYDS OR OTHER INSURERS WRITING AUTOMOBILE, GENERAL LIABILITY, BONDS, BURGLARY, ROBBERY AND THEFT, PLATE GLASS, AND WORKMEN'S COMPENSATION AND EMPLOYERS' LIABILITY INSURANCE IN THE STATE OF TEXAS.
The State Board of Insurance has entered Board Order 26990 dated May 2, 1974 reading as follows:
"Came on and for reconsideration by the State Board of Insurance its Board Order No. 26700 and the amendment thereof. This Order is the result of the complaint of the Mutual Insurance Alliance, a trade association, that Board Order No. 26700 requires changes in what had heretofore been a provision used nationwide, and that certain insurers in such associations do not require a change in present policy language. It was not the purpose of the State Board of Insurance that such change be required, but instead to provide for additional language which was appropriate to certain insurers by statutory requirements in Texas. The Board agrees that in most instances the prior provision is sufficient and meets the requirement of statutes, but at the same time it is not in keeping with the statutory requirements of certain insurers or with the charter, constitution or bylaws of such insurers that meet such statutory requirements.
Therefore, The Board AMENDS its Board Order No. 26700, (Board Order No. 26700 being an amendment of the section styled 'MUTUALS - MEMBERSHIP AND VOTING NOTICE') and said section is AMENDED TO HEREAFTER READ AS FOLLOWS:
'A mutual company shall print into its policy, before its signature at a place to be selected at its option, one of the following two provisions as is statutorily applicable to such mutual company, to-wit:
(1) MUTUALS - MEMBERSHIP AND VOTING NOTICE - The insured is notified that by virtue of this policy, he is a member of the __________ Mutual __________ Insurance Company of __________, and is entitled to vote either in person or by proxy at any and all meetings of said Company. The Annual Meetings are held in its Home Office __________, on the _____ day of __________, in each year, at __________ o'clock __________; or
(2) MUTUALS - MEMBERSHIP AND VOTING NOTICE - The (insured) (named insured) is notified that by virtue of this policy the (insured) (named insured) is a member of the __________ Mutual __________ Insurance Company of __________ and is entitled, as is lawfully provided in the charter, constitution, or bylaws, (to vote) (to one vote) (to only one vote regardless of the number of policies owned) (to a number of votes based upon the insurance in force) (to vote in accordance with the number of policies held) (to such votes as determined by the amount of premium paid) either in person or by proxy in any or all meetings of said Company. (There may be added the sentence 'Each member is entitled to only one vote regardless of the number of policies owned'.) The Annual Meetings are held in its Home Office __________, on the _____ day of __________, in each year, at __________ o'clock __________.'
[Note: Insert phrases in parenthesis above as applicable.]
[Note: This order does not alter section (a) nor section (b) containing 'MUTUALS PARTICIPATION CLAUSE WITH CONTINGENT LIABILITY' and 'MUTUALS PARTICIPATION CLAUSE WITHOUT CONTINGENT LIABILITY'. Such shall remain as stated.]
Companies may continue to use their present supply of Texas Standard policies. In such cases this Board Order will apply only to the next reprint of those policies.
AND IT IS SO ORDERED."
STATE BOARD OF INSURANCE
By William J. Harding, Chief Clerk
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Last updated: 09/06/2014